Rep. Kevin Brady leads bipartisan push to repeal ‘death tax’

A team of bipartisan representatives, led by Rep. Kevin Brady, R-The Woodlands, has filed a new bill that, if passed, would permanently repeal the tax on estates &#151 which they call “the Death Tax” &#151 a burden that often falls to family members inheriting small businesses and estates from the deceased.

Meredith McDermott/ Hearst Newspapers

“The Death Tax is unfair,” said Rep. Mike Ross, D-Ark., a co-sponsor of the bill. “(The) last thing that people need to worry about is tax after they die.”

The bill, officially known as The Death Tax Repeal Permanency Act of 2011, is not yet scheduled to be voted on in the House, but Brady is hopeful that it will pass.

“I think there is strong support (in the House),” Brady said. He added that it’s “going to be a fight in the Senate (because) some senators may not feel the urgency to act.”

The estate tax was phased out under the Bush-era tax cuts, but was set to balloon back to pre-2001 levels when the Bush tax cuts were to expire last year. But President Obama cut a deal with GOP lawmakers to extend lower estate tax rates for two years.

President Obama and Democratic congressional leaders oppose a permanent repeal, calling it the “Paris Hilton tax break” that would predominantly benefit the super-rich.

But repeal supporters say small family owned businesses like farms and ranches are the most vulnerable targets of this tax, because when the full value of a business’ assets, such as equipment and property, are included in someone’s estate, many are forced to sell needed assets just to write a check to the Internal Revenue Service.

“The $5 million exemption expires in two years,” Ross said. “A lot of the smallest businesses have inventories approaching that amount.”